Introduction
Business procedure reengineering is an attack which aims to dramatically better the over all concern procedure. Since 1990s, companies are traveling towards more flexible and client centric. In todays fast pacing universe, redesigning of bing procedures is really important for organisations to be competitory and client oriented. Organizations are altering their concern theoretical accounts to increase their profitableness ; they are radically re-engineering their concern theoretical accounts to vie each other. Economic globalisation has introduced alone conditions in the concern environment. Change in the environment has played a large function, technological promotion, political instability, economic down bend and socio cultural alterations has forced companies to aareengineer its old backward processes and do it efficient and effectual 1. Many research worker claims that the directors should extinguish those activities which are non adding value instead than automatizing them through engineering ( Michael Hammer ; Thomas H. Davenport ; A and J. Short in 1990 ). BPR does non curtail its attack to merely occupations it involves more than that similar full concern procedure organisational construction and its civilization and values, as it needs long-time committedness, resources, and company broad battle. These are made easier by Information technologyA ( IT ) which is considered as a cardinal lending factor to accomplish targeted concern public presentation and efficiency associating betterments on costs, quality, and bringing clip.
Many bookmans tried to happen out the indexs for re-engineering on their success and failure factors ( Neda Abdolvand et al., 2008 ; Hartini Ahmed et al., 2007 ). Traveling toward re-engineering, there are few post-BPR environments which are necessary to supervise for successful execution of BPR ( Siew Kien Sia and Booon Siog Neo, 2008 ). A flexible concern procedure mold, stimulation and re-engineering ( BPMSR ) was besides laid down for the easy execution, proving and feedback of BPR ( Razvi Doomun and Navin Vunka Jungum, 2008 ). Top 10 patterns were besides benchmarked as best patterns for concern procedure redesigning ( S. Limam Mansar and H.A. Reijers, 2007 ). Organizations are more focussed towards client and cost-efficient attention through Business Process Redesign ( S.G. Elkhuizen et al., 2006 ). Successful execution of Enterprise Resource Planning ( ERP ) found to hold a positive relationship with the Business Process Improvement ( BPI ) ( Chuck C.H. Law and Eric W.T. Ngai, 2007 ).
No old surveies have come across to happen out the impact of Business Process Reengineering ( BPR ) and Information Technology over fiscal public presentation of pharmaceutical companies runing in Pakistan. Through this paper is an effort to make full that spread existed in predating literature. Pakistan is more rearward in technological promotion, people are more stiff to alter, and non easy accepting the alteration or does non even supports the alteration at all. Changes related to mechanization are non appreciated as it is perceived that engineering will travel the administration towards layoffs. There are many procedures which are non adding values to a merchandise but are carried out as an of import procedure. There are assorted illustrations all over the universe which has provided groundss that the successful execution of information engineering and extremist redesigning or reengineering of the concern theoretical accounts has drastic positive impact on company ‘s overall public presentation. In Pakistan, pharmaceutical sector has gone through different stages of transmutations ; this paper will analyze the impact of those transmutations over company ‘s public presentation.
The intent of this paper is to analyze the impact of Business Process Reengineering ( BPR ) and Information Technology ( IT ) on fiscal public presentation of pharmaceutical industries runing in Pakistan, and to analyze the factors which will straight impact the fiscal public presentation of the house based on BPR and the use of information engineering.
This paper is structured in subdivisions. Section 1 illustrate the debut ; subdivision 2 entails the overview of relevant predating literature reappraisals ; subdivision 3 describes methodological analysis: subdivision 4 high spots informations analysis and findings, subdivision 5 draws the decision and policy devising sing the future research chances.
RESEARCH Question:
Q1. Does Business Process Reengineering ( BPR ) have a positive impact over fiscal public presentation of pharmaceutical company?
Q2. Does Information Technology play a critical function in BPR deduction?
LITERATURE REVIEW
Varun Grover et Al. ( 1998 ) studied the relationship between IT diffusion, productiveness betterment, and procedure redesign of sample size of 313 United statess based administration. Datas were collected through mailed questionnaire and a series of arrested development analysis were tested on the information. It was concluded that IT and procedure redesign have a relationship with the productiveness. Investing in IT as a medium of information diffusion consequences in improved productiveness.
Fabio Zucchi and John S. Edwards ( 1999 ) examine the relationship between human resource direction and BPR of 11 UK based administration. Detailed interview were conducted with the senior directors of the houses and it was concluded that holistic attack to HRM should be adopted during and after the alterations. All elements sing wages system, administration construction, determination devising governments etc. should be considered every bit during the alterations.
Bernhard Wieder et Al. ( 2006 ) investigated the acceptance of ERP system and its impact over organizational public presentation. Sample sizes of 102 Australian companies were selected through mailed questionnaire and telephonic study. Non-parametric two-independent sample trials, tendency analysis and standard correlativity were applied and it was concluded there was no difference between the houses who are ERPS adoptive parents and non-adopters. It was further concluded that the houses who are the elderly adoptive parents of ERPS has the higher overall public presentation as compared with the late adoptive parents, there were no such groundss were extracted for the supply concatenation public presentation. Merely those ERPS adoptive parents gain higher concern degree public presentation advantage who adopted SCMS besides. For the future deductions it is recommended that the survey should be performed with big sample size and alternatively of ERP system, enterprise systems should be studied.
S.G. Elkhuizen et Al. ( 2006 ) survey ‘s the usage of BPR in implementing transmutation of organisation towards client focused and cost decrease. Literature reappraisal methodological analysis was adopted, 86 surveies were reappraisal and it was concluded that quality of surveies were non up-to grade and many of the surveies shows no consistences between their nonsubjective and results. The paper explores a new thought for the research workers to make the work on Medical Subject Heading and bring forth a quality work.
The survey of Cristina Gimenez ( 2006 ) portions an thought of integrating procedure followed by the houses during their execution stage of supply concatenation direction. The research was conducted with the sample size of 172 Swedish companies for the clip frame of spring-summer, 2001. Survey model methodological analysis was choice and informations were cod through questionnaires. Statistical trial ; Pearson correlativity, K-means bunch analysis and discriminant analysis, were applied to pull out the consequences, and it was concluded that there are three integrating stages ; stage I, companies are non integrated. Phase II, companies are high-medium degree of integrating ; low degree of integrating in logistics-production, and external integrating is levelled to medium. And stage III, companies are extremely integrated in their internal boundaries and some their supply concatenation relation. The survey provides support to directors in the integrating procedure. Before traveling toward any external integrating, house must incorporate their internal maps.
S. Limam Mansar and H.A. Reijers ( 2007 ) investigated the best BPR patterns and faculty members with penetration into the most popular probes to arise improved procedure designed. An on-line study was conducted for the clip frame of 2003-2004 in UK and Dutch, questionnaires were emailed. Top 10 best patterns were selected and tested against two instance surveies in which ten best patterns were discussed ( Limam Mansar and Reijers, 2005 ). The paper helps to place the best 10 patterns applied extensively by the practicians in BPR. The regulations have been accumulated together to provides thoughts about different execution chances for new procedure. This survey can be used to derive success in BPR stage.
Hartini Ahmad et Al. ( 2007 ) inspected the cardinal success factors of BPR in Higher Education. Case study quantitative analysis was conducted, three instance surveies were considered for the survey. The results of the instance surveies were so compared with the best patterns of BPR benchmarked by University of Wisconsin-Stout. In the terminal 7 factors were found critical for successful deduction of BPR, which were teamwork and quality civilization, effectual alteration direction, quality direction and adequate wages system, democratic and participative, effectual undertaking direction, information system and sufficient fiscal resources. The future deduction of the survey implies that all the factors driven through the survey should be considered during BPR transmutation.
Chuck C.H. Law and Eric W.T Ngai ( 2007 ) investigated the relationship between organisational factors, concern procedure betterment, and ERP success utilizing 96 houses runing in Hong Kong. The informations were cod through e-mailing the questionnaires to 1000 houses, 106 companies responded out of which 96 were those whose questionnaires was full completed. On those sample size Non-parametric statistic method were used ( Mann- Whitney trial and correlativity analysis ) and it was concluded that Business Process Improvement ( BPI ) has a positive relationship with the success of Enterprise Resource Planning ( ERP ), senior direction support of BPI, and senior direction support of Information Technology ( IT ). It was besides discovered that the distance between CIO ( Chief Information Officer ) and IT map to CEO ( Chief Executive Officer ) ; CEO-IT distance, has a negative relation with the extent of BPI. The determination suggests that the bookmans and research workers of ERP must pay attending on variables of the surveies for the houses belonging to different geographic beginning.
Emad M.Kamhawi ( 2008 ) researched on the factor that influences connotation of directors toward encompassing BPR in 3rd universe state. A study methodological analysis was adopted to roll up informations, questionnaires were send to 14 companies and sample size of 106 proper filled questionnaires were cod. Statistic Regression analysis was applied to informations and it was concluded that “ effectual undertaking direction experiences ” and “ the ability to construct an environment back uping demand for alteration ” are of import commissariats to derive positive positions toward BPR. The survey besides suggests that director ‘s cognitive manner and educational degree has an impact on their purposes to follow BPR. The survey supports the house to place the degree of cognition, accomplishment, and experience required by the directors to follow the BPR.
Neda Abdolvand et Al. ( 2008 ) studied how to minimise the hazard of using Business Process Reengineering by mensurating preparedness of two Persian companies ; Company A and Company B with the sample size of 169 and 156 severally. Questionnaires were prepared through critical reappraisal of past researches and through get offing service they were posted to respective companies. First Factor Analysis trial, and so Correlation Analysis were applied. This research concluded with the six indexs which are the positive preparedness indexs of Business Process Reengineering ( BPR ) a?’ that are democratic leading, concerted working environment, top direction duty, compassionate direction, and the usage of IT. Resistance to alter is been the lone negative index for BPR preparedness. It was suggested that at each organisational degree BPR demand to alter the civilization and behavior of human. Directors play a critical function in the success of BPR. New squad plants and undertaking environment based on BPR should be engaged so to heighten the preparedness indexs. Companies traveling through preparedness to alter should stress on ICT ( information and communicating engineering ), effectual channel of communicating.
Siew Kien Sia and Boon Siong Neo ( 2008 ) examined working impact of BPR through Panoptic on lens concept ; specially the degree of authorization and work monitoring. An intensive instance survey was conducted at Internal Revenue Service, Singapore, which goes through successful BPR. Sample sizes of 99 were tested and it was concluded the high work monitoring during post-BPR environment. During redesigning stage, close work monitoring has an impact on existent authorization, go forthing small range of authorization. The future deduction of the survey is that implementers can impact the subject of visibleness to set up control creatively in a reengineered environment. Indications of post-BPR workplace can assist director to undertake the alteration direction issues.
Razvi Doomun and Nevin Vunka Jungum ( 2008 ) examine the flexible model through BPR can me module, stimulated and reengineered in the cost effectual mode. The methodological analysis adopted for this survey is based on literate reappraisal and it was resulted that patterning starts with the definition of modeling construction and restrictions. This survey contributes to implement the successful BPR in call Centre.
Sidikat and Mukaila Ayanda ( 2008 ) assess the impact of BPR over organisational public presentation of fiscal establishments. Data for this survey were collected through primary and secondary beginnings. Questionnaires were distributed and interviews were conducted for that information which was non covered by the questionnaires. Annual studies, diaries, etc. were the beginning for secondary informations. Sample size of 60 was considered for the reappraisal in the part of Nigeria. It was analyse through per centum and arrested development analysis that success of BPR is based on direct relationship of footing of activity and its relation to the demand and aim of the concern. For future the paper implies that it would be worked on different sectors every bit good as in different part.
Qiang Wang et Al. ( 2008 ) examine the fiscal public presentation of third-party logistics affected by information engineering in China. Samples of 105 were considered useable and were collected through mail study for the survey. Path analysis and spline arrested development was applied on the information and it was concluded IT has a important impact over fiscal public presentation of 3rd party logistics and for better public presentation, IT strategies and concern schemes are to be in aligned. In future it is implicated that the informations size should be addition and the theoretical account proposed were based on drawn-out anticipation theory, in future it can be tested in other scenes excessively.
E. Loukis et Al. ( 2009 ) investigated the part of ICT ( information communicating engineering ) investing in concern procedure alteration paradigms that is BPR and TQM on the concern value coevals of houses. Sample of 271 Grecian houses indiscriminately selected with the aid of informations base of ICAP and hypothesis were tested through arrested development theoretical account. The consequence shows BPR and TQM have a positive equal relationship with the ICT investing and house value added. The utilizations of ICT should non be limited to systematise the bing concern procedure but besides it must be used as an advanced tool for building new concern procedures like BPR and TQM.
Rashmi Jain et Al. ( 2009 ) examined the demand and outlook from freshly hired technology fresh employee affecting BPR. Survey research method was adopted for the survey, 12 companies of different sector were selected as a sample size and were received a study questionnaires incorporating 33 inquiries. Standard divergence and norm were computed to happen out the importance of each 19 BPR subjects and the research clearly shows a developed function of BPR. Employer views BPR as more of operational nature instead than of strategic nature. For the future deductions, this survey can be used as a usher line for the entry-level applier to fix themselves for the industry and it besides provides a counsel to tauten about the degree of cognition, accomplishment and preparation required for the BPR to be engaged.
Charles Tennant and Yi-Chieh Wu ( 2005 ) investigated the cardinal success factor of UK based company in implementing BPR. Open and near ended questionnaire study was gathered from assorted concern sectors of 63 UK based companies who had to the full implemented BPR. Main aim of this research is to analyze the driver for BPR, the cardinal barriers and through this cardinal success factor can be identify. The consequence highlighted that the chief drivers for using BPR are competitory force per unit area, cost decrease and productiveness betterment. The barrier which hinders the successful execution of BPR is that IT is over focussed and Management is under focused. It is suggested that the survey should besides be perform on other regional based companies.
Mohsen Attaran ( 2004 ) studied the relationship between IT and BPR. This paper investigated the existent execution of different companies who efficaciously applied IT in BPR. 14 houses were reviewed for this survey and the probe shows that IT is a most of import tool for successful execution of BPR as it meets the end of reengineering in three ways through proper airing of information across administration, supplying proper channel of communicating, and assisting in patterning and optimizing reengineering attempt but deficiency of appropriate cognition, airy leader ship manner, committedness of employees and connexion of BPR ends to corporate ends the opportunity of benefits are limited. But in many instances IT can be a major barrier in extremist redesign because it requires information sharing redesign, which is a major opposition of employees.
Methodology
The informations collected for this survey is primary and secondary both. Financial public presentations of the companies were extracted from the fiscal study published by the houses and it is quantitative in nature. The primary beginning of the information is for the deduction of BPR and IT used to measure its success through carry oning unstructured elaborate qualitative interview with the cardinal forces of the companies.
The relationship had been developed between the quantitative and qualitative informations, and relevant statistical trial was applied to reason the consequence.
